AUSTRALIA’S IMPORTS

Waipa Post, Volume 42, Issue 3305, 4 June 1931, Page 8

AUSTRALIA’S IMPORTS

A warning to United Kingdom manufacturers that their second largest export maket would offer a very much reduced demand for their products “ over a number of years ” was embodied in the annual report by Mr R. W. Dalton, senior British Trade Commissioner in Australia. After explaining that the present difficulties arose directly from excessive a borrowing over a long period of years, leading to constantly increasing costs of production in the staple/industries, Mr Dalton says:—“ Wha,t is most needed to assist the solution of both the external and internal problems of Australia is increased income from abroad resulting from sale of' products which show a reasonable margin of profit to the producer. . . . Either export quantities must be much increased or imports must be further reduced. The further reduction of imports will present added difficulties in further heaVy reductions in revenue On the other hand, an increase in export quantities will necessitate a large increase in production which, in the best of circumstances, would require considerable time, whereas the need for the adjustment of trading balances and for accretions to internal income. is urgent. Moreover, it has become clear and is persistently being repeated by producing interests that costs of production are so high that in existing price conditions and even in much more favourable price conditions in many cases, production is unprofitable. Consequently not only is there now little urge to increased production, but there will be little' until costs of production are much reduced. This again will require considerable time.” Mr Dalton adds that an opinion prevailed in some quarters that the tariff alone was the cause of the reduction of imports; but the main causes were financial and a very heavy reduction would have occurred, tariff or no tariff.